How to get tax refund on overpaying unemployment UI taxes?

[nautibei]

Dear TurboTax Community, 

Reading the recent news that Congress plan to include the first  $10,800 UI benefits as non-taxable in their new American Rescue Plan. If for those who've already file our 2020 taxes and paid our portion of the UI withheld taxes. Do we get a refund back for IRS or we have to file a special form? will someone shed some light?

Thanks,

A.

[DoninGA]

Since no legislation has been passed by Congress and the President has not signed the legislation there is nothing to report on how this piece of the pie is going to be handled.  When and if this becomes part of the tax code the IRS will write the rules and procedures and post them on the IRS website.

[macuser_22]

You must wait to see if it actually becomes law and then the IRS writes the regulations.

[cme9411]

This finally became law or will on Friday so how and when should we amend our taxes for those of us who may have overpaid?

[DoninGA]

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@cme9411 wrote:

This finally became law or will on Friday so how and when should we amend our taxes for those of us who may have overpaid?

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After the legislation has passed Congress and after the President has signed the legislation and after the IRS has written the rules, regulations and procedures.  And after the IRS has changed any forms or schedules to accept the tax code changes.  And after the IRS has approved the changes in the TurboTax program that apply to the tax code changes, then it will be available for the users of the tax preparation software.

This can take anywhere from several weeks to several months before it becomes available.

[txdave21]

any word at this time? I'm sure millions of people are in the same boat so likely recommendations will be made quickly

[MaryM428]

TurboTax is working with the IRS on this.  Do not amend your return or try to make any changes until we have announced how to handle this.

[koala4u]

I already pay my federal taxes for my unemployment , but now I do have credit on the first $10200 , no taxers so how I can do  get my money back after I paid the whole amount ? do I need to do an to fixed my taxes on turbo or just wait for the government to do the refund..

[ErnieS0]

@koala4u The IRS said it will automatically process refunds for taxpayers who have already file their tax returns without the exclusion for the first $10,2000 of unemployment. You don't need to file an amended tax return.

The IRS has not said when those refunds will be given out.

If your modified adjusted gross income (AGI) is less than $150,000, the American Rescue Plan enacted on March 11, 2021, excludes from income up to $10,200 of unemployment compensation paid in 2020, which means you don’t have to pay tax on unemployment compensation of up to $10,200.

If you are married, each spouse receiving unemployment compensation doesn’t have to pay tax on unemployment compensation of up to $10,200. Amounts over $10,200 for each individual are still taxable. If your modified AGI is $150,000 or more, you can’t exclude any unemployment compensation.